1.6 Illustrate the following with supply or demand curves: a. In Joseph Hellers iconic novel, Catch 22,...

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1.6 Illustrate the following with supply or demand curves:

a. In Joseph Heller’s iconic novel, Catch 22, one of the characters was paid by the government to not grow alfalfa.

According to the story’s narrator, “The more alfalfa he did not grow, the more money the government gave him, and he spent every penny he didn’t earn on new land to increase the amount of alfalfa he did not produce.”

b. In 2015, Chipotle suspended the sale of pork at one-third of its restaurants due to animal welfare concerns, and this had a significant impact on the amount of chicken entrees it sold to customers.

c. From 2007 to 2014, median income in the United States fell by 8 percent, shifting the demand for gasoline. During that same time period, crude oil prices fell 35 percent, shifting the supply of gasoline. At the new equilibrium, the quantity of gasoline sold is less than it was before.

(Crude oil is used to produce gasoline.)

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Principles Of Economics

ISBN: 9780802845610

12 Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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